Breaking free from the chains of the past Where
truth moves faster than a Holstein calf No law
waiting on some printed page We're charting new
ground in the digital age From genomic codes
to robot facts We cut through the noise, no hold
them back not your daddy's dairy news tonight
we're sparking Welcome to the Bullveen Podcast,
where we deliver the dairy industry's most progressive
insights and challenge conventional thinking
that's holding your operation back. I'm your
host, and this is the podcast for dairy farmers,
industry professionals, and anyone who refuses
to accept, that's how we've always done it, as
an answer. Today's episode is going to ruin your
Memorial Day weekend, but it might just save
your farm. We're diving deep into one of agriculture's
most predictable disasters, the annual Memorial
Day milk dumping crisis that's costing dairy
farmers millions while processors shrug their
shoulders and blame market volatility. Here's
what most people don't understand. Every single
Memorial Day weekend, while Americans fire up
their grills expecting abundant dairy products,
dairy farmers across the nation watch their life's
work. literally flow down the drain we're talking
about millions of gallons of perfectly good milk
being dumped because processors apparently can't
master the basic art of predicting what people
want to eat during a three -day weekend sound
ridiculous it is and it's been happening for
decades but here's the question nobody in the
industry wants to ask why are we still accepting
this annual disaster as inevitable when the technology
exists to fix it right now In today's episode,
we're exposing the systemic failures behind Memorial
Day milk dumping, from antiquated forecasting
methods that belong in the 1950s to processing
bottlenecks that turn predictable biological
peaks into financial bloodbaths. More importantly,
we're going to give you the tools to fight back
and demand better from your cooperative. If you're
tired of subsidizing processor incompetence through
your milk check, this episode is for you. Let's
get started. Okay, let's unpack this. We're diving
into a topic that, well, unfortunately hits close
to home for far too many in the dairy world,
especially this time of year. Yeah, that annual
frustrating thing with milk dumping around Memorial
Day. Exactly. It's a challenge we see reports
on every spring. And for this deep dive, we've
really dug into material from a source called
Why Memorial Day Kills Dairy Farms. It lays out
some pretty stark arguments about why, at least
from its perspective, this keeps happening. Right.
Why this predictable event seems to lead to milk
being discarded, you know, year after year. And
this document, it doesn't just call it an inconvenience.
No, it really frames it as a systemic failure.
Uses the term predictable disaster, actually.
So our mission here. for you listening, is to
really get into the weeds of this source material.
Understand the arguments it's making, look at
the numbers it presents. And see why, according
to this viewpoint, the dairy industry seems kind
of stuck in this loop, managing the seasonal
surplus. Think of this as getting a shortcut
to understanding the why behind those dump reports
you might see. Or maybe even experience firsthand,
unfortunately. We're looking at what this source
claims are the systemic failures. And the potential
pabs forward, it suggests. It really tries to
pull back the curtain on some operational and
structural issues it believes are, well, being
ignored. OK, so where does the source start its
argument? It kicks off with what it calls the
spring flush reality check. Right. And the core
idea there is pretty fundamental dairy science.
Stuff every farmer listening knows. Yeah. The
source even suggests it apparently escapes our
processing giants, which is quite a statement.
It is. But it's about that predictable surge,
March to May, when cows hit their peak production.
The source really emphasizes this isn't some
mystery. It's basic bovine biology, documented
way longer than modern herd books. And it uses
the 2024 numbers to back this up. Notes that
U .S. milk production, February 24, jumped 2
.4 % over Feb 23. Reaching 17 .4 billion pounds.
Even factoring in the leap year, that's significant
seasonal pressure. But the deeper point this
source makes is that this biological reality,
the spring flush, inherently creates these predictable
like 6 -7 % surges over fall production. Regardless
of the overall annual numbers. Exactly. Cows
are just doing what generations of genetics programmed
them to do, capitalize on spring for max yield.
And with the U .S. herd around 9 .34 million
head as of April 24. The sheer volume produced
during this peak. period, the source argues,
just overwhelms processing capacity designed
for average daily volumes. So the source wants
you to grasp that this concentration of production
in spring causes the dumping crisis. Even if
total annual production is flat or maybe even
down slightly. It paints it as this predictable
biological peak catching processors off guard
year after year. Like a first time farmer surprised
that calves need colostrum. That's a pretty sharp
analogy they use. It really is. And it quotes
Professor Jared Hutchins from Illinois capturing
the farmer's view. Yeah. If your buyer says they
have enough, you can't go to your cows and say,
hey, girls, stop producing now. Right. The brutal
reality, as the document puts it, is dairy farmers
are locked into a biological cycle. Unlike a
corn farmer or a feedlot operator who might have
more flexibility. Your cows definitely don't
check the CME report before milking time, do
they? Not likely. So the source then pivots to
ask why the burden for this predictability falls
so heavily on the farmer, not the processors.
Which, alluding to a section it sharply titles
the $47 million smokescreen. Yeah, it pushes
back hard against what it calls industry spin,
around a $47 million Memorial Day loss figure
that was apparently floating around. And the
core insight there is that the figure didn't
actually come from milk dumping at all? No. The
source points out that number came from the USDA
suddenly ending local food purchase assistance
funding in California. Totally unrelated. Ah,
so the source uses that to suggest the sector
is so fragile financially that processors might
use unrelated funding cuts as a kind of distraction
from their own operational issues. That's the
claim. Follow the money, but double check where
it actually came from. Exactly. The source says
the real dumping numbers tell a more disturbing
story. During peak periods, U .S. farmers are
reportedly forced to dump up to 3 .7 million
gallons daily. Daily? Wow! The source calculates
that's like dumping the entire daily output of
about 370 average -sized dairies. It's a huge
number. And it gets specific, citing regional
examples. Last year, upper Midwest farmers apparently
dumping up to 350 ,000 gallons a day during the
flush. And anticipating a repeat this past Memorial
Day weekend. The math it presents for a typical
farm. Maybe 8 .1 gallons per cow per day. Means
their whole day's work. Maybe 1 ,120 standard
milk jugs just poured out because plants were
full. Plants that, the source argues, were operating
at capacity but couldn't handle a surge they
knew was coming. So the source poses that question.
If we can predict calving dates months out, forecast
feeds needs. Why can't processors handle a surge
that happens every single spring? Which transitions
into what it calls real farmers, real fury. the
human cost of corporate failure. And here it
highlights reactions. Mitch Thompson quoted,
watching his milk dumped. A real kick in the
shorts. Which the source translates from Minnesota
nice to absolutely infuriating. And you can understand
why. He's shipping around 70 ,000 pounds daily
of quality milk. The result of intense management,
breeding, nutrition. And haulers pick it up only
to dump it in a field because regional capacity
was maxed out. That's the scenario described.
It also cites Sarah Schmidt from AMPI confirming
that during peak periods, milk from member farms
regularly exceeds processing and marketing capacity.
The source uses another dairy analogy here. Yeah.
Like having a perfect breeding program, heifers
freshening perfectly. Only to find the maternity
barns full, nowhere to put them. Yeah. And the
2024 spring flush, according to this source,
really highlighted the crisis. Processing bottlenecks,
forcing dumping, even with billions in new capacity
supposedly coming online in 2025. Right. The
source argues that even that $8 billion investment
still won't address seasonal surge management.
Which, it claims, makes the structural problems
even more obvious. The question it raises is
why this level of... what it calls operational
incompetence, is tolerated from the companies
farmers rely on. That leads into the section
financial bloodbath behind federal Band -Aids.
Arguing this crisis happens against a backdrop
of chronically negative dairy economics. The
source states that over the past decade, average
dairy farm net income was negative in all but
one year. Wow. The analogy used is running a
breeding program where only one bull in 10 actually
improves the herd. That's... Not good. Not sustainable.
And it points to the COVID period as a stark
example. Class I prices collapsing. From $19
.01 per hundredweight in Jan 2020 down to $11
.42 by June. This source calculates that's like
losing $760 in revenue per cow annually. Huge
hit. In Pennsylvania alone, potential monthly
losses cited at $25 .2 million, nearly $40 ,000
per farm. The source then digs into how the FMMO
system handles dumping. Right, the federal milk
marketing orders. When milk's dumped, it gets
pooled at the lowest class price. Effectively
spreading the financial hit across all producers
in that order. And it quotes NC State Extension
saying, this FMMO draw provides only nominal
financial assistance. Doesn't make anyone whole.
The analogy is sharp, like a neighbor's mastitis
outbreak hitting your milk check because you're
in the same co -op. The sources point. Everyone
pays for these systemic failures, but the system
itself isn't fixed. And the math that should
enrage you, according to this document, is losing
six to eight eights per hundred weight when your
milk gets pooled at class four prices, maybe
11 to 12. Instead of potentially getting class
I prices, say 18, 20. For a 1 ,000 cow herd,
70 pounds per cow daily. That's a daily revenue
loss of $4 ,200 to $5 ,600 during dumping events.
The question it asks is why farmers are effectively
subsidizing processor incompetence through our
own milk checks. Pretty direct. Very direct.
That analysis then leads into what the source
calls the perfect storm. Four systemic failures
that guarantee crisis. So beyond just blaming
forecasting, it identifies four interconnected
vulnerabilities. That, in its view, turned these
seasonal surges into annual disasters. Systemic
design flaws, it argues. Okay, what's the first
one? Failure one. The perishability trap. Obvious
point, but critical. Raw milk isn't corn or beans.
Right, it's got that biological countdown timer.
Maybe 72 hours from cow to processing before
quality drops. Creates distressed inventory.
When the spring flesh spikes production 6 -7%,
that clock becomes a loaded gun, as the source
puts it. Farmers racing bacterial counts while
their corn farming neighbor can just wait for
better prices. Exactly. Second failure. Processing
capacity. The rigid bottleneck. The source claims
most plants run at 85 -95 % capacity normally.
Leaving virtually no surge capability. The analogy
is running your parlor at max throughput every
single day. One hiccup and you're overwhelmed.
A typical 2 million pound fertility might only
have 200 ,000 -300 ,000 pounds of surge capacity.
Which the source says is less than the daily
production of 30 large farms. That buffer gets
wiped out fast during the flush. And what the
source finds even more infuriating is that processors
know exactly when the spring flush will hit.
It's not a surprise hurricane. It's as predictable
as calving dates. Yet the claim is infrastructure
is consistently built for average volumes, not
peaks. Citing 2024 again. Force dumping in the
upper Midwest. Wisconsin co -ops diverting milk
out of state at high cost. Regional price discounts
of 2 to 33 LARs per hundredweight due to local
oversupply. All presented as evidence of this
structural issue. Okay, what's failure number
three? The school closure demand crater. Schools
are a big chunk of fluid milk use, maybe 7 -10
% regionally. And they shut down en masse right
around Memorial Day. It's not complicated forecasting,
the source says. It's a recurring calendar event.
But it feels like processors treat it like surprise
weather. That's the implication. Yeah. Memorial
Day weekend doesn't just cut school demand. It
eliminates it for three, four days. Creating
an immediate demand crater that processors somehow
forget to account for, according to the source.
All while production is hitting its absolute
peak. Makes sense. And the fourth systemic issue.
Transportation and logistics. The invisible choke
point. Ah, so even if you could process it and
had demand, you might not be able to move it.
That's the argument. Moving six, seven percent
more. Milk strains transport networks. Milk hauling
operates on just -in -time scheduling with minimal
excess capacity. Roots are optimized for average
volumes. Spike production and suddenly transport
is the bottleneck. A 2024 example cited. Wisconsin
farms with processing available maybe 200 miles
away. But couldn't get trucks because haulers
were maxed out, resulting directly in dumping.
The source asks why co -ops aren't investing
in surge transport capacity like they might invest
in surge storage. Okay, so that's a pretty bleak
picture of the problems identified by the source.
What about solutions? Well, the document's view
is summarized under technology solutions. Innovation
exists. Adoption doesn't. The core idea, while
dairy's dumping milk using old methods. Other
sectors, even within ag, have revolutionized
forecasting and supply chain tech. Companies
like Milk Movement get mentioned specifically,
offering platforms with better forecasting, real
-time tracking. That the source claims are specifically
designed to reduce dumped milk. Calls it DHI
testing for your supply chain. That's a good
analogy for this audience. And the scale is significant.
Milk movement reportedly managing over 30 billion
pounds annually, like 15 % of the U .S. market.
Working with 2 ,500 farms, over 5 ,000 users,
including big Fortune 100 companies. AI -driven
forecasting is discussed too. Analyzing historical
data, weather, market trends, holidays, generating
precise predictions. Reports cited suggest AI
can cut food waste up to 30%. optimize supply
chains, reduce spoilage by 50%. The sources analogy
here, like moving from visual heat detection
to activity monitors, the technology exists to
improve accuracy dramatically. Dynamic pricing
also comes up as a potential tool. Yeah, the
idea of responding to supply and demand in real
time. compared to having a dynamic feed purchasing
program that adjusts automatically. AI -driven
dynamic pricing lets retailers adjust prices
based on current costs, demand, market conditions,
moving away from static pricing. Some grocers,
the source says, are already exploring this,
offering discounts for products near expiration.
Which is directly relevant to managing perishable
surplus milk at the retail end. Right. The tech
exists in retail ag. The rules could be adapted.
The source's big question here is, why aren't
we demanding the sophistication from our processors?
Why settle for outdated systems? Good question.
Shifting slightly, the source looks at what forward
-thinking cooperatives are actually doing. Spoiler,
not enough. Suggests some progressive co -ops
aren't just waiting around, acting like farmers
who adopted robotic milkers before their neighbors
figured out what a VMS system was. USDA funding
gets a mention the Dairy Business Innovation
Initiatives, DBI, $11 .04 million in 24. Wisconsin's
DBIA got $3 .45 million for the Midwest. And
the program offers grants, dairy business builders
up to $100 for small -medium ops, and industry
impact grants from $50K to $250K for innovative
ideas. But here's the source's critique. Yeah,
the critical point is that these programs, while
good, focus more on product development and marketing
than addressing fundamental forecasting and surplus
management challenges. The analogy. Investing
heavily in genetics but ignoring herd nutrition.
Solving part of the problem, missing the core
issue driving dumping. What's needed, according
to this source, are co -ops actively exploring
regional milk supply balancing. Like... Sharing
of breeding services across farms, maybe? That
kind of thinking. Plus strategic investments
in flexible processing facilities. Ones that
can shift between products easily, like farms
adapt barns for different needs. And establishing
real -time data collaboration between processors
and retailers. Similar to how progressive farms
share production data internally or with consultants.
The harsh reality check, as the source puts it,
is most co -ops still operate like they're marketing
commodity corn. instead of a highly perishable
product. Okay, what about policy? The source
discusses the policy vacuum subsidizing failure
instead of preventing it. Right. It argues that
current FMMO rules for pooling dumped milk at
the lowest price are just reactive. They distribute
losses after they happen. Sharply compared to
a herd health protocol that only treats sick
cows, doesn't prevent disease. The USDA's milk
loss program, as mentioned, compensates for weather
disasters. but not for these systemic processing
or forecasting failures, as the source points
out. So we have programs for unpredictable floods
and hurricanes, but nothing specifically for
this annual predictable crisis. Framed as a fundamental
policy failure, like crop insurance covering
hail, but not predictable drought in a drought
-prone area. The uncomfortable question posed,
why are taxpayers and farmers, in its view, subsidizing
processor incompetence instead of demanding actual
solutions? Through policy. Heavy stuff. The source
then brings it back right to the farm level.
What this crisis means for your bottom line.
The argument. Even if your farm hasn't directly
dumped milk, these events still hit your wallet.
How so? The source contends that spring flesh
dumping adds to overall market oversupply, depressing
prices for all milk pooled through Class 3 and
4. Ah, the relatable analogy again. One farm's
high SCC affecting the whole bulk tank quality
or price. Systemic failures impact everyone financially.
For farms already on thin margins, thinner than
optimal body condition scores, as the source
puts it. These dumping events accelerate consolidation
and farm exits. Even if you don't dump, the source
suggests you're likely paying through reduced
spring prices, increased market volatility affecting
contracts. A competitive disadvantage if your
region lacks flexibility and higher co -op marketing
costs spread across members. The brutal truth,
according to this document, every gallon dumped
is money stolen from your milk check. Wow. But
it doesn't just leave it there, right? It looks
at positive examples. Yes. Under the innovation
that's already happening, why aren't you part
of it? Points out smart farmers aren't just waiting.
Some investing in on -farm processing cheese,
yogurt for flexibility during surplus times.
Others developing direct marketing relationships,
bypassing traditional bottlenecks. Like farms
marketing breeding stock directly instead of
through auction. Makes sense. Aggressive operations,
the source says, are using real -time production
monitoring for early surge warnings. Exploring
alternative outlets like ingredient manufacturing,
creating value -added products to absorb peaks.
Leveraging direct marketing to maybe capture
premiums when commodity prices are low due to
dumping. The source's point. The tech and market
opportunities exist for farmers to take some
control. Directly asking, so what's your excuse?
for not exploring these options. Oof. Leads to
the conclusion. Bottom line. Stop accepting the
unacceptable. Yeah, the concluding argument is
powerful. Memorial Day dumping isn't an act of
God. It's framed as a management failure accepted
for too long. Like tolerating high SEC because
that's just dairy farming. This collision of
predictable biology and what it calls antiquated
methods is bankrupting farms and destroying value.
And the solutions, the source says, are already
here. More analogies. AI forecasting is like
genomic evaluations for market prediction. Dynamic
pricing like automated feeding systems responding
to cow needs. Flexible infrastructure like modern
freestalls adaptable to group sizes. But the
source is clear. Change requires farmers demanding
it. Processors investing in modernizing. Policymakers
recognizing predictable crises need proactive
solutions, not just reactive band -aids. Looking
ahead, it poses that question. Memorial Day 2026,
365 days away. Dump milk again or fix the system.
And it lays out your move, the five -point action
plan for farmers to refuse a status quo. Okay,
what are the five points? First, challenge your
cooperative's forecasting transparency. Demand
their accuracy rates during the spring flush.
If they can't provide them, ask why not. Second.
Push for real -time data sharing agreements with
processors, like sharing DHI data. Get rid of
the black box decision making. Make info flow
transparently. Third. Explore DBI grant opportunities,
specifically for alternative marketing or value
-added processing to manage peaks. Notes builder
grant applications are accepted regularly. Makes
sense. Fourth. Demand investment in flexible
processing capacity from your co -op. Capacity
designed for peaks, not just averages, compares
it again to farmers investing in adaptable facilities.
And fifth, directly connect with technology providers
like Milk Movement. Notice they already manage
15 % of the market, reportedly cutting costs
for clients dealing with these issues. The source's
strong conclusion, the power to change starts
with informed farmers refusing to accept that's
how we've always done it. Yeah, it finishes with
a direct call. Stop subsidizing processor incompetence
with your milk check. Demand better. Your farm's
survival depends on it. And the immediate action
step it suggests. Simply ask your co -op, what's
your forecasting accuracy rate during spring
flush and what are you doing to improve it? The
source contends their answer, or lack thereof,
tells you everything about their seriousness
in fixing this predictable crisis. So, okay,
pulling back from the source itself, what does
this deep dive into why Memorial Day kills dairy
farms? really boil down to? Well, it certainly
paints a challenging picture. Very critical of
how the annual spring flush meets processing
and logistics limits. The source just hammers
home again and again that this isn't a surprise.
It frames it as predictable biology hitting outdated,
rigid systems. A systemic failure built into
the structure in its view, not some random event
you just endure. Right. We've covered the source's
points on the predictability of the flush itself.
The big financial impact beyond just the dumped
milk. the pooling mechanics, price depression.
We looked at its arguments about the key systemic
failures it identifies. Perishability, rigid
capacity, the school demand drop, transport constraints.
And we explored its perspective on tech solutions
like AI forecasting and real -time data. Contracted
with its critique of current industry and policy
responses as, well, not enough or maybe misdirected.
Ultimately, this document presents a really clear,
urgent call to action aimed squarely at farmers.
Urging them to challenge the status quo, demand
transparency, push for investment in modern solutions,
AI, flexible infrastructure from their co -ops,
and the wider industry. And here's where it gets
interesting, right? That final question that
leaves us with. Yeah, looking ahead. Memorial
Day 2026 is coming. Are you going to dump milk
again? Or will you be part of fixing the system?
It really leaves us with a thought for you, the
listener, to consider after hewing all this,
reflecting on the issues raised in this deep
dive. What specific actionable step, maybe even
a small one, will you take based on this information
to push for change in your part of the dairy
industry? That's a wrap on today's episode of
the Bullvine Podcast. If this episode made you
angry, good. That anger is the first step toward
demanding the changes our industry desperately
needs. Memorial Day 2026 is 365 days away. The
question isn't whether the spring flush will
happen again. It's whether you're going to let
processors dump your milk while acting surprised
about predictable biological realities. Here's
your homework. Before next week, ask your cooperative
one simple question. What's your forecasting
accuracy rate during spring flush, and what are
you doing to improve it? Their answer will tell
you everything you need to know about whether
they're part of the solution or part of the problem.
Remember, the power to change this broken system
starts with informed farmers who refuse to accept
the status quo. Stop subsidizing processor incompetence.
Demand better. Your farm's survival depends on
it. Visit us at www .thebullvine .com. Don't
forget to subscribe and share this episode with
other farmers who are ready to stop accepting
that's how we've always done it as an answer.
Until next time, keep challenging the industry
to do better. Your cows, your bank account, and
the future of dairy farming depend on it. This
has been the Bullvine Podcast. We'll see you
next time.